Gold Price Jumps on Weaker US Jobs Data and Strait of Hormuz Progress

The gold price jumped on Friday after weaker-than-expected US jobs data reduced hopes of a US Fed rate hike. The precious metal prices ended the week on a positive note, with strong gains seen in gold and silver rates.

The US economy unexpectedly lost 23,000 jobs in July, compared to expectations for an increase of about 80,000, marking the first monthly decline in payrolls in five months. Earlier payroll data were also revised sharply lower, wiping out roughly 103,000 jobs.

The weak report followed softer-than-expected ADP private payrolls data and a contraction in the ISM Services Employment Index, both of which pointed to a cooling labor market. The US official stated on Friday that progress has been made in talks between Iran and Oman, which could lead to the reopening of the strategic Strait of Hormuz and the restoration of oil exports disrupted by the five-month-old conflict.

Anuj Gupta, a SEBI-registered market expert, said: 'Cooling crude oil prices are putting pressure on the US treasury yields and the US Dollar.' The US dollar weakened sharply, creating a supportive backdrop for precious metals. Ponmudi R of Enrich Money said that gold and silver prices are likely to remain highly sensitive to US inflation data, Federal Reserve communication, Treasury yields, the US dollar, and developments surrounding the Strait of Hormuz.